Elon Musk and “Otman” lawsuit opens today! The truth behind the OpenAI power struggle will be revealed, and both sides will trade barbs again before the hearing

Elon Musk and OpenAI’s lawsuit opens today! Musk accuses OpenAI of abandoning its non-profit mission and seeks $150 billion in damages; OpenAI counters that his motives are purely jealous. This case will reveal the inner power struggles, with several tech giants expected to testify.

Elon Musk and OpenAI CEO’s lawsuit opens today

A highly watched lawsuit in the U.S. tech industry is about to begin! The legal case between Elon Musk and OpenAI and CEO Sam Altman is scheduled to start with opening statements on Tuesday (4/28 U.S. time).

The reason this case draws so much attention is because the verdict could not only impact OpenAI’s future but also influence the direction of AI technology development.

In 2024, Musk filed a lawsuit against OpenAI, Altman, and co-founder Greg Brockman, accusing them of abandoning OpenAI’s original mission as a non-profit organization dedicated to benefiting humanity, and shifting toward pursuing commercial profits.

Musk is currently seeking up to $150 billion in damages from OpenAI and its largest investor, Microsoft, and demands that the entire amount be donated to OpenAI’s charitable organization.

Since OpenAI’s valuation has already exceeded $850 billion and is preparing for a potential IPO that could value it at $1 trillion, the internal disclosures revealed in this lawsuit could lead to strict scrutiny of OpenAI’s leadership.

• Related report: Elon Musk sues OpenAI angrily! Also mocks it as “ClosedAI”? A look at the latest developments in the mudslinging

Clash intensifies before the court opens

Before the court officially begins hearings, Musk and OpenAI have exchanged fierce words on social media.

Musk first posted on X criticizing Altman and Brockman, calling them scammer Altman and stock guy Brockman, accusing these two of stealing from a charity, claiming Brockman gained hundreds of billions of dollars in stock, while Altman arranged dozens of deals with benefits attached.

Musk emphasizes that he founded and funded OpenAI for the public good, recruiting key talent and sharing success experiences, only to be betrayed.

Additionally, according to Wired, Musk used his platform owner status to pay for promoting an in-depth article written by The New Yorker, exploring alleged deceptive behavior by Altman.

In response, OpenAI’s PR team said they are eager to state their position in court, as both truth and law are on OpenAI’s side.

An updated statement from OpenAI claims Musk’s lawsuit motivation is purely jealousy, regret over leaving OpenAI, and an attempt to hinder competitors.

OpenAI points out that the two sides discussed the need to establish a for-profit entity back in 2017, but Musk demanded full control and even proposed merging OpenAI into Tesla. After being rejected, Musk chose to leave and declared OpenAI’s success as impossible.

OpenAI also revealed evidence suggesting Musk coordinated with Zuckerberg to sabotage OpenAI’s mission. Currently, OpenAI is still governed by a “non-profit organization,” which is valued at over $180 billion and serves more than 900 million users weekly.

Jury selected, high-profile witnesses to testify

According to Reuters, to handle the lawsuit between Musk and Altman, the U.S. federal court in Oakland, California, has completed jury selection.

The judge and attorneys questioned potential jurors for bias, ultimately selecting nine jurors, including a nurse and a paint company owner. During the process, some expressed negative views of Musk, but most said they could remain fair and objective during the trial.

This major tech industry trial is expected to summon several heavyweight Silicon Valley figures, including Musk himself, Altman, and Microsoft CEO Satya Nadella.

Another key witness is former OpenAI board member Shivon Zilis, who is also the mother of Musk’s four children. OpenAI’s lawyers allege she leaked internal company information to Musk.

The court will also review thousands of pages of internal documents, including Brockman’s personal diary entries from fall 2017. In his diary, Brockman wrote that this was their only chance to get rid of Musk and questioned whether Musk was the great leader he would choose.

As the trial moves into opening statements, the rivalry among tech giants and the business power struggle in the AI industry are expected to reveal more shocking internal details during the upcoming proceedings.

Further reading:
Rumors that OpenAI is developing a phone? Ming-Chi Kuo points out MediaTek, Qualcomm, and Luxshare as key suppliers